Vietnamese Market Players Unbothered By Possible Impact Of Upcoming Maintenance At Local Producer’s Plant
- A local producer applied a different price adjustment from another local producer
- PP demand is slow as the rainy season has impacted the end-product sales
- According to rumour, Binh Son Refinery and Petrochemical (BSR) will conduct maintenance shutdown
SSESSMENTS.COM noted that Vietnamese market players are unbothered by the possible impact of the upcoming maintenance shutdown at a local producer’s plant. The players mentioned impact should be minimal as there is another local producer and offers from this producer are usually more attractive. As for this week, the mentioned producer decreased offers for PP Homo Raffia by VND500,000/ton ($21/ton) while on the contrary, another local producer increased offers for the same product by VND300,000/ton ($13/ton) compared to last week. Meanwhile, offers for localized PP Homo Raffia from Saudi were stable compared to the same period. For import cargoes, offers were mostly stable on a weekly comparison. Offers for PP Homo Raffia from a Saudi producer and an Indian petrochemical producer stood at $930/ton on LC at sight, CIF Vietnam main port basis. Thai suppliers were not actively offering to Vietnam this week due to limited allocation. A Thai producer that remains offering to the country maintains stable levels compared to last week for both PP Homo Raffia and PP Homo Injection. On a monthly comparison, July shipment offers for PP Homo Raffia from South Korea went up between $70-80/ton.
Market players informed SSESSMENTS.COM that demand for PP in Vietnam is slow this week. Some buyers are reluctant to make purchases due to high offers. In addition, the rainy season has impacted the end-product sales. A rice packaging converter mentioned that demand for the product is traditionally slow during the rainy season, hence, the factory is running at 50% of the normal production rate at the moment. In the production sector, market talks have it that Nghi Son Refinery and Petrochemical (NSRP) is currently running at 70% of normal capacity and plans to run at full capacity in August. According to rumour, Binh Son Refinery and Petrochemical (BSR) will have maintenance shutdown in July. However, no confirmation and further details regarding the matter so far.
Looking ahead, market players contacted by SSESSMENTS.COM opined that PP offers in the Vietnam market will decrease in July due to unsupportive demand following slow sales of end-products during the intensifying rain in the particular month.
Local/localized PP offers on cash, FD basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Product | Transaction Type | Offers (VND/ton) | Equivalent in USD/ton | Delivery Location |
|---|
| Saudi | PP Homo Raffia | Offer Given | 26,000,000 | 1,012 | Ho Chi Minh |
| Thailand | PP Homo Raffia | Offer Received | 27,600,000 | 1,074 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 24,300,000 | 945 | Ho Chi Minh |
| Vietnam | PP Homo Raffia | Offer Received | 26,300,000 | 1,023 | Haiphong |
Import PP offers on LC at sight, CIF Vietnam Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Saudi | PP Homo Injection | Offer Received | 930 |
| South Korea | PP Homo Injection | Offer Received | 940* |
| Thailand | PP Homo Injection | Offer Given | 1,030 |
| India | PP Homo Raffia | Offer Received | 930 |
| South Korea | PP Homo Raffia | Offer Received | 940* |
| Saudi | PP Homo Raffia | Offer Received | 930 |
| Thailand | PP Homo Raffia | Offer Given | 1,050 |
Description: *Offers for July shipment
Tags: Asia Pacific,English,Freemium,PP,SEA,Vietnam,Weekly
Published on June 24, 2020 1:44 PM (GMT+8)
Last Updated on October 1, 2020 4:29 PM (GMT+8)
